The Tax Publishers2020 TaxPub(DT) 5239 (Bang-Trib)

INCOME TAX ACT, 1961

Section 32

Computer and computer parts/peripherals are entitled for depreciation at 60%.

Depreciation - Rate - Computer and computer parts/peripherals -

Revenue alleged that assessee claimed depreciation on plant and machinery @60% against the applicable rate of 10%. Assessee submitted that the head shown under Plant and Machinery also included various computers and computer parts, which was shown separately to schedule to accounts as those were computers and computer parts entitled to depreciation @60% and there was no error in claiming the depreciation @60% which were being computers and computer peripherals. Held: Assessee disclosed office equipments, i.e., computer and computer parts/ peripherals under separate head entitled for 60% depreciation. As per entry No. 5 in the new Appendix I attached to Income Tax Rules, 1962, with effect from assessment year 2006-07 onwards, applicable rate of depreciation for computer or computer parts is at 60%. Accordingly, the AO was directed to grant depreciation on those items at 60%.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :


INCOME TAX ACT, 1961

Section 154

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